Advisor Neglectfully Maintaining A High Ask Price For Insider Client

Re Savard, 2014 IIROC 32 Decision No. 14-0152

The Respondent, an investment advisor, admitted to participating in manipulative or deceptive methods, acts, or practices involving a security, even though he reasonably ought to have known that such participation was intended to maintain the sale price, ask price and bid price within a predetermined range contrary to UMIR Rule and Policy 2.2.

The facts, which are set out in great detail in the settlement agreement included that the Respondent either knew or ought to have known that the husband, an insider, was controlling his spouse's account to enable her to buy the securities in question (VTC.P). Similarly, the Respondent knew or ought to have known from his years of experience in the industry that the purpose of the husband's dealings was to maintain the price of VTC.P until the qualifying transaction and private placement could be completed.